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World-Class Board and Investor Group Joins With Steve Case to Create Revolution Health Group, the First Comprehensive Consumer-Driven Health Care Company

Posted on: Thursday, 7 July 2005, 15:00 CDT

In recognition of the opportunity - and need - to create a more consumer-centric health care system, a group of prominent leaders, led by AOL co-founder Steve Case; former Secretary of State Colin Powell; former Fortune 500 CEOs Frank Raines, Jim Barksdale, and Steve Wiggins; and leading venture capitalist Miles Gilburne announced today the formation of Revolution Health Group (RHG).

Case, who will serve as Chairman of Revolution Health Group, said: "Health care is a huge industry, representing one out of six dollars in the entire U.S. economy, but it is clearly in need of transformative change. Consumers are frustrated trying to keep themselves and their families healthy in an increasingly inflexible, inconvenient, inefficient system. At Revolution Health Group we will put consumers back at the center of the system by giving them more choice, control and convenience - while building the first comprehensive, consumer-driven health care company."

The major investors in Revolution Health Group include its majority-owner, Revolution LLC -- the investment company founded by Case earlier this year -- as well as (in alphabetical order):

-- Jim Barksdale, the former CEO of Netscape, and previously CEO of AT&T Wireless and COO of FedEx;

-- John Delaney, co-founder and CEO of CapitalSource, a leading commercial finance firm to growth companies, and previously co-founder and CEO of HealthCare Financial Partners;

-- David Golden, a Managing Director of JP Morgan, and the former head of its technology, media and telecommunications banking group; Golden has been actively involved in financing dozens of health care companies;

-- Miles Gilburne, a leading venture capitalist who led AOL's corporate development for many years;

-- Colin Powell, former Secretary of State and Chairman of the Joint Chiefs of Staff, and founder of America's Promise: The Alliance For Youth

-- Frank Raines, former CEO of Fannie Mae, the largest non-bank financial services company in the world, and previously head of the Office of Management and Budget, where he was the first Director in a generation to balance the federal budget;

-- Steve Wiggins, founder and former CEO of Oxford Health Plans, one of the largest and most successful managed care companies, who then founded HealthMarkets, one of the pioneering consumer-driven health care companies;

-- Jeff Zients, former CEO of The Advisory Board Company, a consulting services company to more than 2,000 of the country's largest and most progressive health systems and medical centers.

In addition to personally investing in Revolution Health Group, each individual is also a founding member of the RHG Board of Directors.

"This founding investor group and board brings together world class leaders from the corporate, government and philanthropic sectors - some with extensive experience in health care, and some who come to this subject with fresh perspectives," said Case. "Above all, it is a group of individuals with a track record of innovation and success, and a commitment to a more consumer-centric health care system."

Frank Raines, who has been actively involved in the formation of RHG and will serve as its Vice Chairman, said: "It is clear that after a half century of employer-driven and government-driven health care, it is time to usher in a new age of consumer-driven health care, and the timing is right for a company like Revolution Health Group, which seeks to empower consumers and give them better ways to meet their family's health care needs."

Colin Powell added: "I am very excited about Steve Case's plans to build a first-class, consumer-driven health care company. I am impressed by the team he has assembled to lead Revolution Health Group and I am pleased to be both a founding investor and board member."

Revolution Health Group's strategy is to acquire controlling interests in promising, innovative health care companies and build them for long-term growth. RHG has already reached preliminary or final agreements with seven companies, with initial areas of focus including:

-- Convenient Care. RHG will bring affordable, convenient, nurse-provided care to retail locations all across the country.

-- Health Information. RHG will provide consumers the very best information to help them find a doctor or other health care provider, and to learn more about medical issues and conditions.

-- Managing Health Finances. RHG will provide consumers with tools to help them manage their health care finances, as well as provide small and mid-sized employers tools to help them help their employees.

-- Personal Health Records. RHG will provide consumers with secure, easy-to-use personal health records.

-- Health Care Coverage. RHG will offer consumers new choices in how to pay for their health care.

More details about these areas of focus, and the initial acquisitions, will be forthcoming in the Fall, after the transactions have obtained all necessary legal and regulatory approvals.

For more information about Revolution Health Group, or its parent, Revolution LLC, please refer to its website, www.revolution.com.

Source: Business Wire

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